Xerox 2004 Annual Report Download - page 40

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38
Consolidated Statements of Income
Year ended December 31, (in millions, except per-share data) 2004 2003 2002
Revenues
Sales $7,259 $6,970 $ 6,752
Service, outsourcing and rentals 7,529 7,734 8,097
Finance income 934 997 1,000
Total Revenues 15,722 15,701 15,849
Costs and Expenses
Cost of sales 4,688 4,436 4,233
Cost of service, outsourcing and rentals 4,306 4,311 4,494
Equipment financing interest 345 362 401
Research and development expenses 760 868 917
Selling, administrative and general expenses 4,203 4,249 4,437
Restructuring and asset impairment charges 86 176 670
Gain on affiliate’s sale of stock —(13) –
Other expenses, net 369 876 593
Total Costs and Expenses 14,757 15,265 15,745
Income from Continuing Operations before
Income Taxes, Equity Income and Cumulative
Effect of Change in Accounting Principle 965 436 104
Income taxes 340 134 4
Equity in net income of unconsolidated affiliates 151 58 54
Income from Continuing Operations before
CumulativeEffect of Change in Accounting Principle 776 360 154
Gain on sale of ContentGuard, net of income taxes of $26 83 ——
Income before Cumulative Effect of
Change in Accounting Principle 859 360 154
Cumulative effect of change in accounting principle —– (63)
Net Income 859 360 91
Less: Preferred stock dividends, net (73) (71) (73)
Income available to common shareholders $786 $289 $ 18
Basic Earnings per Share
Income from Continuing Operations before
Cumulative Effect of Change in Accounting Principle $0.84 $0.38 $ 0.11
Net Earnings per Share $0.94$0.38$0.02
Diluted Earnings per Share
Income from Continuing Operations before
Cumulative Effect of Change in Accounting Principle $0.78 $0.36 $ 0.10
Net Earnings per Share $0.86 $0.36 $ 0.02
The accompanying notes are an integral part of the Consolidated Financial Statements.